Liaison with Industry

The Reserve Bank consulted widely on payments, clearing and settlement issues
in 2010/11. It met with various stakeholders in retail payments systems –
including financial institutions, merchants, payment service providers and
consumer representatives – to discuss a range of matters. Many of these
discussions related to the Strategic Review of Innovation or the joint RBA–Treasury
ATM taskforce. Meetings were also held with stakeholders in financial markets
to discuss clearing and settlement issues. These included discussions related
to the oversight of the licensed clearing and settlements (CS) facilities and
prospective changes to the over-the-counter (OTC) derivatives market.

The Reserve Bank continued to work closely with other regulatory and government
agencies. Examples include the joint ATM taskforce with Treasury, and the reviews
of financial market infrastructures regulation and central clearing for OTC
derivatives undertaken by the member agencies of the Council.

In line with its liaison agreement with the Australian Payments Clearing Association
(APCA), the Reserve Bank met with APCA management following each APCA Board
meeting in 2010/11, as well as with the APCA Board on a number of occasions.
The liaison agreement was reviewed during the year, with some changes subsequently
made to ensure that the arrangements remain effective.

The Reserve Bank participated in a number of public fora on payments system
issues. The Deputy Chairman spoke on the strategic review of innovation at
the Cards and Payments Australasia conference in March. The Head and Deputy
Head of Payments Policy appeared before the Senate Economic References Committee's
inquiry into competition within the banking sector. Other staff attended various
payments and CS industry events, including conferences and forums organised
by APCA and the Australian Securities and Investments Commission.

International Engagement

The Reserve Bank was represented at a number of international groups in 2010/11:
the Committee on Payment and Settlement Systems (CPSS), the CLS Oversight Committee,
the Executives' Meeting of East Asia-Pacific Central Banks (EMEAP) Working
Group on Payment and Settlement Systems, and the OTC Derivatives Regulators'
Forum. Involvement in the CPSS included participating in a number of working
groups and the review of the standards for payments, clearing and settlement
systems.

The Reserve Bank also engaged with overseas central banks and regulatory agencies
on a less formal basis. Such engagement included discussing competition issues
in retail payments with relevant authorities in North America, and keeping
abreast of developments in OTC derivatives regulation around the world via
discussions with various central banks and securities regulators. Engagement
with global financial market stakeholders, such as the International Swaps
and Derivatives Association, also provided useful information about developments
in OTC derivatives.